Exhibit 21-1 Production possibilities curves In Exhibit 21-1, the production possibilities curves of wheat and corn for Nabia and Pada are presented. In Nabia the cost of producing one more unit of wheat is equal to:

Question

Exhibit 21-1  Production possibilities curves  In Exhibit 21-1, the production possibilities curves of wheat and corn for Nabia and Pada are presented. In Nabia the cost of producing one more unit of wheat is equal to:

Quizplus · Accepted Answer

The slope of the production possibilities curve represents the opportunity cost of producing one more unit of a good in terms of the other good. In Nabia, the slope of the curve for wheat is -4, which means that producing one more unit of wheat costs 4 units of corn. Therefore, the answer is A).

Exhibit 21-1 Production Possibilities Curves in Exhibit 21-1, the Production